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tv   [untitled]    March 12, 2012 10:30am-11:00am PDT

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biodiesel minute to the clerk. these items will appear on the board of supervisors agenda must otherwise stated. supervisor mar: please call item no. 2. >> item number two. ordinance amending the san francisco planning code section 429 to provide that developers currently required to spend 1% of construction costs for public artwork on any new development. supervisor chiu: i wanted to ask the deputy city attorney when we should appropriately notice this. >> thank you. this is a fee that is being imposed. it needs to have 14 days. when the legislation went from 75 down to the trigger, that
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aspect of it has not been noted. i recommend that this be continued and that an additional motives be issued for the lower trigger. given that there are a number of different districts spelled out in this legislation, my suggestion would be to cast a broad notice to say that the potential fee would be imposed to all projects that are greater than 25,000 square feet. simplified relief for the clerk -- for the clue -- for the clerk. if you at some later time needed to add it in, and i understand it does not apply citywide, but if there was a specific district that he wanted to include, he would not have to make another notice. supervisor chiu: that makes sense.
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please notice it appropriately. you have a date when we might be of a comeback? >> march 26. supervisor mar: we need to open this up to public comment. seeing no one, public comment is closed. can we please continue this until monday, march 26? thank you. please call item no. 1. >> hearing to receive an economic impact study of nightlife and entertainment in san francisco; requesting that the controller, with support from the entertainment commission. supervisor wiener: shortly after i took office i requested that the city do something we had never done before as a city. specifically to measure the economic impact of my life in
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san francisco. a frequent topic of discussion frequently, we focus on the negatives and we give very focused on that. we are focusing on these sporadic,-events. we have not put together the positive economic solutions. the cultural importance of lite light in terms of defining the community and attracting the people of all ages to this city, having diversity in the city, in the lgbt community, the importance of my life to building community when people come out of the closet and thereafter.
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i requested that the city economist conducted this study and they will be presenting this study shortly. this study required a lot of thinking outside the box and a lot of hard work. i want to thank mr. eagan for his very strong work around this study. in the future, it is my view that this study will provide us and others with a quick, actual data with which to make policy decisions. sometimes with nightlife entertainment, we make decisions based on assumptions and stereotypes without always looking at the actual facts as much as we should. this will provide us with not all of the facts, but many more facts than we had before.
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i also want to stress, and i believe that mr. eagan will stress this, this number is quite conservative. first of all, the multiplier effect really does have a significant impact in terms of purchases from other businesses. it becomes a virtuous cycle of job creation in consumer spending. in terms of outdoor fairs and festivals, which are not always at night, but are sort of an adjunct to night life, they are very difficult to measure in terms of their economic contributions. some are easier than others. we know that folsom st., pride, a chinese new year, contribute
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as well. had we been able to get all of that data in this number, we would definitely be higher. i also just want to emphasize that in looking at night life of venues, restaurants, bars, clubs, live performance venues, these are almost all businesses that are small. small businesses that struggle, just like every other small business struggles in terms of meeting a payroll and complying but city permitting and other requirements. they do provide health care in many cases. they contribute to the community. i know that the number of representatives in the castro, the key role that is played by night live venues, and members of the community working with the community can move the neighborhood forward.
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that said, i am going to invite -- first, colleagues, are there any introductory remarks? >> i really appreciate -- supervisor chiu: i really appreciate the leadership on supporting the different small- business is that are a part of the late night entertainment, but also the various festivals we have a in the city. i know that we had a hearing a few meetings ago in which mentioned the tremendous economic benefits. i also think that in conversations with the hardly strictly bluegrass festival, the benefits and multiplier of facts or even much higher for that festival. i want to say that what brought me to the city was tremendous night life and cultural events in our neighborhood. from living around the corner to the clown in the stars, to all of the different places in the merchant quarters in my district as well. concerns to come up, like around
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the rocket room in other recent issues, so i am glad we are looking at this issue as we try to deal with other issues that come from my life in our neighborhoods. some of the entertainment commissioners are assisting me in looking at bringing club owners and small businesses together with residents to address those issues. i see that the former entertainment commissioner is here, as well as stephen lee. i appreciate their being here. and thank you to supervisor wiener for the leadership on this issue. supervisor wiener: following up on but was just mentioned in terms of what you came here, it is challenging, sometimes, to be a young person in san francisco. it is expensive to live here and we do not produce as many jobs as we would like to, but i believe that my life is one of the things that draws in keeps young people here. not just because it makes for
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interesting city, but it provides a lot of jobs for young people. whether it is as waiters in restaurants or behind the bar, or at clubs, there are a lot of young people. i want to stress that this report is not in any way a justification for my life venues who are not being responsible. everyone has to be responsible in the entertainment commission is working hard to hold everyone accountable. we can have a wonderful in supported night live and recognize that we have to play by the rules. that said, i would like to invite up our city economist, mr. eagan. after the presentation, we will hear from a few city departments and we will open it up to public comment. the yellow cards at the table in the front, if you wish to make public comment, please fill them
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out and we will call them at the appropriate time. >> good afternoon, supervisors. ted eagan, comptroller's office of economic analysis. i would like to briefly go over the report on the economic impact of night life. thank you for your kind remarks on the report and would like to acknowledge the reports in the office, as well as the research development consultant on this project, who did really impressive work surveying the patients -- surveying the night life in the cold nights of december. essentially, the chief findings are two fold. first, night life is a major source of economic activity, jobs, and tax revenue for the city, but in terms of the net economic impact, it is an important driver. there are a lot of types of spending that represent large
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piles of money, because san francisco residents like to spend their money there, which is great, but there is an entirely different order for types of businesses that draw people into san francisco and draw -- pump money into the economy that would not be there. that is where the multiplier effects really begin to kick in. in the scope of the study be thought it needed to revolve around businesses that would be open after 8:00 p.m. they were grouped into five categories. restaurants, including live entertainment it did not generally charge for the mission, bars that were like restaurants but did not serve food, then use and like clubs that were different in that they would charge for a mission and have live entertainment and deejays, what have you. there are also art galleries opened in the evening as well as other forms of performance art. we were looking for businesses
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that we could get statistics for, government economic statistics, but also in that category of being open after 8:00 p.m. as he said, and i want to mention this, we were not able to incorporate outside festival in the events into that. by now we do mean to diminish -- mean to diminish their economic importance to the city, but each one of those events requires an economic impact report of their own. for example, of folsom street fair, 350 to 400,000 people, 40% coming from outside the bay area. a major driver, which has mentioned, generates over $60 billion for the city. -- $60 million for the city. our estimate is that there are 3200 businesses and industries of this sort in sentences go,
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employing nearly 48,000 people. this is the direct number of people employed in a restaurant, bars, night galleries, art galleries, in other venues. we got this data from the apc and bureau of labor statistics. these industries host over 80 million customers per year. as many of our estimates are, these are conservative estimates. restaurants account for 30% of the total. the numbers for all of the academy -- all the categories ranged higher. as a group, they generated $4.2 billion in spending in san francisco in 2010. bottom this spending gets recycled back into the city economy in a number of ways. first of all, payment in wages to the people that work in the industry. the industry also spends $670 million per year just on food.
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another $580 million on local beverages. another $370 million on local performers in global business services. it gets recirculated to provide opportunities for other industries. what's there are a lot of restaurants that are full- service restaurants that have bars -- >> there are a lot of breast route -- and what restaurants are full service, for those significant number of restaurants that have both, the restaurant category that includes restaurants with bars. >> absolutely. all the restaurants have an alcohol license. supervisor wiener: right, but sometimes it is not just a bar where people are waiting to be seated, but a destination bar,
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still considered a restaurant? >> it would be. it might be bigger than it would appear at first glance. any bar that serve food would be classified as such. supervisor wiener: thank you. >> we estimated that might like businesses contributed a minimum of $55 million per year in tax revenue to the general fund. they were readily able to come up with these estimates by looking at the sales table, but there is an additional amount that comes from things we could not quantify it, like property tax payments and fees paid to the city. this is a map that indicates where light by businesses are located in san francisco at the zip code level. these are heavily concentrated in what we might call of the court of the city. but north-south fisherman's wharf, union square, chinatown,
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tenderloin, etc. as we look at the sales tax they that and how much of the sales, the city's sales come from night by the establishment in the area, it is about 80%, with 36% coming from that upper northeast quadrant, and another 14% from the marina, 14% from selma, 8% from the castro area, and another 6% from the japan town area. as i mentioned with our consultants, resurveyed over 300 patrons at my life establishments in these areas in the city. we wanted to find out what they're spending was and why they came to san francisco, in where they came from originally. on average, 43% of patrons that these businesses on any given
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night our san francisco residents, 57% live outside the city. a 11% come from elsewhere in california. 10% come from other countries. 36% live in other bay area counties. this is a very vital and important element in understanding the economic role of night life. we will explain why in a minute. the first one of the reasons, we asked them how many times they had been out in san francisco. the residents that we caught, none of them were on their first time out. the ones that we did speak with go out several times a month. the interesting thing is that bay area residents who live in other parts of the bay area, about 80% of them also go out several times per month in san francisco. the visitors from further away,
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obviously not as frequent contributors to the san francisco might live, but we are getting a significant amount of spending coming into the city from nightlife commuters who come tripoli and spend in the city, in the evening. we asked people what was there -- we stopped people and ask them survey questions at the businesses that they were attending, but it was not necessarily the main reason that they went out at night. we asked them what their main reason was. for residents, 38% were going out for no particular reason, they were going to make friends, public events, or were just out without a particular destination. the other groups of people not quite the same profile, 36% decided to go out for the purposes of going to a particular restaurant or a particular bark, another 9% going to a particular night
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club. looking at bay area residents, the nightclub numbers are much bigger numbers. one-third of the residents, regardless of where we caught up with them in the evening, came to the city to go to a nightclub, emphasizing a particular role of those businesses as a magnet for drawing on an outside spending. a 39% of people were coming to a restaurant in san francisco. 12%, we thought that was a large number, were coming to an art gallery, that was the main reason they were coming to san francisco in the evening. crowds outside the bay area, but what is different. generally it is not the light like that brings people here from other states or countries. but night life is an important contribution to how much that visitor wind up spending. you can see that tourists windup spending considerably more per evening that a
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president. -- then a resident. again, the numbers are important. 31% from within the bay area came out at night, even if the trip was not to see a show, they went out that night to see a show. the majority came out for any other reason, like tourist attractions. tourists, as i mentioned, the previous -- a roughly spend three times more than each resident. per head, they are a major contributor to city economic activity. i emphasize that when you are counting for economic impact, the spending in san francisco residents is nice, but their money is here anyway and they would spend it on something else. if it was not the businesses that brought in and tourists and visitors from the rest of the area, we would be losing that spending.
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it is important to recognize the draw of the night life for visitors to the city. when we look at the breakdown of spending by people who do not live in san francisco, it worked out to about half the. about $2 billion of the city's $4.2 billion come from people that do not live within the city. this represents new spending that generates multiplier effects throughout the economy. we estimate that this spending supports 28,000 jobs in this city, about 5% of all jobs in san francisco. 19,000 in bars and clubs, with about 4000 spread across the other industries and other multiplier effects. to summarize, it is a major industry in the major part of the san francisco economy, but it has a particular role in
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attracting bay area risk -- visitors and also adding to the spending of tourists in san francisco that other industries cannot match. that combination of things is vital in it -- understanding the economic impact. supervisor wiener: thank you. i think that the mayor's office will be touching on this, but one area that i do not even know how you would begin to measure is when you look at the draw of having a vibrant nightlife for workers, young workers who want to be here, in industries following that -- for example, a gambler type workers that want to be here, it makes them -- makes this a more attractive place. i do not know how you would go about measuring this, but do you have any thoughts? >> it would be difficult to measure in the would need a different survey, but the statistics of what we know to be true suggest that something like that is going on.
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when you see the number of young people that basically are coming to san francisco frequently for night life, in the think about, as you alluded to earlier, the importance in my life at framing your sense of community, i would find it easy to believe that the critical mass of night life in san francisco is a critical draw for the people living here. we know, for example, that demographically san francisco is over-represented by people in the 20's and people who are senior citizens, the two groups that have more than -- where we have more of them that -- and other parts of the state. i would a imagine that that is exactly what you're talking about. captioned by the national captioning institute --www.ncicap.org-- thank you. -- supervisor wiener: thank you, great. i want to invite jason elliott
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from the mayor's office. >> thank you, supervisor, chairman. jason elliott, from the mayor's office. stole my thunder. this is a phenomenal study and i think that the numbers are staggering. 80 million paying customers, billions in economic impact. it is shockingly amazing, how big these numbers are. there is a direct economic impact, and then there is the fact that this is what makes san francisco san francisco. technology companies want to be here for a number of reasons, predominantly because the talent is here. the talent is here, predominantly, because it is fun to live here. would love to my home town, this is what -- with love to my home town, this is what makes sense francisco the place. firms are expanding, they want
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to be here. that is not what is qualified so much as it is impact fall. the mayor, in recent days, has spoken of this topic and the reason to have targeted staff, like we did with local manufacturing. we're going to focus on this in a sort of dedicated way, making the same commitment to night life, which presents its own unique set of challenges and opportunities, to support that industry. we, of course, want to receive input and feedback from the entertainment commission through your office, supervisor, and the night my community, about how best to support the community. we look forward to working through that. city government seems to be working with the well, just to reiterate. the reason that we can have a vibrant place for companies to
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relocate here is because it is a vibrant place to live, the night by opportunities. thank you for commissioning this study and thank you to the comptroller's office for doing such a good job. any questions? supervisor wiener: thank you. next i want to invite up jocelyn from the entertainment of it -- jocelyn, from the entertainment commission. we have three entertainment commissioners here. commissioner anaconda -- yes? you are here? as well as speaker lee and brian. >> commissioner perez. supervisor wiener: i did not see you back there. thank you for coming. >> good afternoon, supervisors. what mr. elliott said, that was music to my years. we are thrilled and want to thank supervisor we're --
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supervisor wiener, obviously, for bringing to light these numbers that are so important. the business of night life is hard and everyone knows it. my part in that, the entertainment commission's part in that, makes it easier at times, but we feel important about that. i want to say that besides thinking supervisor wiener and, of course, the controller, i want to thank the industry itself. they have worked really hard, as they know, to professionalize themselves, to minimize the incidents that have occurred, making my job easier. i hope that they continue to do that in specialized every part of their business, to keep up that good work. we wanted to definitely highlight the mayor's
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commitment to a position, essentially, in the office of economic development, to work with the industry and our commission to figure out how we can best support it. government in the past has been an impediment. again, i am part of government. i want to move us all into the position of being a partner with this industry, and i think that the government will definitely benefit from that. we are aware that the mayor's office, and the board as well, have been using culture, arts, entertainment to develop that market. personally i have seen, for a few years, people developing the southeast sector of san
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francisco as well, because land use really allows for a lot of activity in that sector what you saw is indicative of where planning allows entertainment and where it does not. to be reminded that while there is a tremendous amount of the value in this industry, there's a lot of san francisco that does not allow entertainment at all, of which is a good thing. there are neighborhoods in san francisco that are preserved through land use, keeping those neighbors feeling comforted by the fact that they will continue to be primarily a residential and always there neighborhood first. i do not want to harp on this court -- on this for too long, but we are here to work with the industry and you, supervisors, in your district, to make sure that my life is safe, responsible, and that we are doing a great

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